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B-181622 1 (1974-07-17)

handle is hein.gao/gaobadccf0001 and id is 1 raw text is: * -a. L ~2' lb. U ,.9. fl0~ iL OX1, j 45d'j DECISION 4 bii acs1 Qr I ..= oo L VMf 'LIMPTRLLLL*ER GMMRAL DPT T-1E UNITX1 G1TAT S WAEHINGTON, %0C. 20f54 le) / jJLof13' / rc//c I' 't ri -it6um2 MATTER OF:I DATE : July 17, 1974 Mitessfell Machine Uorkt, In, 40996 . ! 4% DI1GEST: Sales contract may be rescinded where bid as more than si:x zimon amount of nexCv hiCh Ibid and nlmost three times Goverrunent eatablinhicd upset price since contracting officer ionen constructive notice of error and bid should have been verified prior to award, This decision concerns fhe request of1 Iitchell Rchine Works, Inc., for rescisson of the award of item 95 under surplus sales contract 1o, 3-D-(S)-h-3781 becauso of mistake in bid alleged after eward of the contract, 2 The General Services Admnir.stration has recommended that the contract be rescinded ot the ground that itchell'n bid, ihich vas more than six times the amount of the next high bid and almost three times the Government estnblishd upset price, should have placed the contracting officer on notice of the error. T have reviewed the administrative file and, on the basis of the information contained therein, we agree that a *thecontracting officer was on constructive notice of the error and that the bid should have been verified prior to award. Accordingly, the sales contract may be canceled without liability to Nitchelli Machin Works, Inc. B-177612, March 9, 1973. DeputyComptrafL. of the United States 70g4 62. N I 9 ( /Y k. t 1 .11

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